Insurance companies are in a tough spot with this year's stronger-than-average hurricane season, while climate-related perils continue to push catastrophe losses higher. Adding fuel to the industry's woes is the higher frequency of secondary perils, such as wildfires and flooding, due to climate change. These increased occurrences have been slowly adding to primary insurers' catastrophe losses and limiting profitability. While the industry is currently in the middle of peak hurricane season, insurance stocks typically rebound when the size of the insured losses become apparent or are announced by the companies, according to Piper Sandler. Insurance stocks tend to fall initially as big hurricanes near landfall and the likely extent of damage is appraised.

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Persons: Piper Sandler, Paul Newsome, Newsome, Chubb, Bob Huang, Morgan Stanley, Huang Organizations: Atlantic, . Insurance, Insurance, Allstate, American International Group, Progressive, Universal Insurance Holdings, Everest Re Locations: Florida, Maui, Hawaii, California